Sime Darby forms 50-50 JV with Ramsay Healthcare

Sime Darby, a Malaysian conglomerate, announced on Nov 10 that Ramsay Sime Darby Health Care, its 50-50 joint venture with Ramsay Health Care in Australia, will be sold for 5.7 billion ringgit ($1.21 billion). Sime Darby Holding and Ramsay's subsidiary AH Holdings Health Care announced a sale and purchase agreement with Malaysian-based private hospital chain Columbia Asia Healthcare on November 10.

"The offer from Columbia Asia was one we could not refuse," said Sime Darby's Group Chief Executive Officer Jeffri Salim Davidson in a statement.

"While the hospital business is a great asset, we have always maintained our focus on our core trading businesses of motors and industrial," he added.

The announcement confirmed a Reuters report published on Tuesday, which stated that Columbia Asia, a Southeast Asian healthcare firm backed by alternative asset firm TPG, was the frontrunner to acquire Ramsay Sime Darby. The sale will allow Sime Darby to unlock the value of its previously deemed non-core healthcare assets, with a 2 billion ringgit gain on stake disposal, the company said in a statement.

Ramsay, Australia's largest private hospital operator, did not respond immediately to Reuters' request for comment after hours. The transaction represents the largest Southeast Asian healthcare acquisition since 2019, when Malaysian conglomerate Hong Leong Group and TPG paid approximately $1.2 billion for Columbia Asia's assets.